R/ECON™ I-O: An Economic Impact Model

The R/ECON™ Input-Output Model (I-O) shows how sectors of an economy interact. For a given industry, the model shows the “production recipe” for the goods and services the industry sells and the shares of its revenues that are consumed by other industries in the economy.

The R/ECON™ I-O model’s estimates of interregional trade by sector are based on those conceived by the Regional Science Research Institute and are recognized by the academic community as the most reliable estimates available.

R/ECON™ can customize models for any state, metropolitan area, county, or set of counties for which detailed data on employment and payroll are publicly available or provided by the client.

The R/ECON™ I-O model can be used to:

estimate the number of jobs and the amount of income that will be created in an economy by an event or shock

determine an event’s, an industry’s, or a program’s total contribution to an economy

calculate the fiscal viability of a proposed economic development incentive

estimate the economic impact of the relocation of a firm

help identify successful state and local economic development strategies

determine the relative economic viability of large projects

show how changes in one sector of the economy influence other sectors

identify the impact of a project on various government spending programs, and vice versa